What is cost accounting: Cost accounting refers to recording the

Cost accounting refers to recording the costs of production involved in manufacturing the goods and delivering the services of a firm. It considers the fixed costs, which remain unchanged throughout the production process, and variable costs, which keep changing with respect to the stages through which the production passes. Cost accounting assists management to plan and control the business through budgeting for operations, capital budgeting for expanding operations, standard costing and the reporting of variances, transfer pricing, etc. Cost accounting organizes and tracks all a company’s direct and indirect expenses and provides invaluable insights into financial health. But there are gotchas. Learn what cost accounting is, how it differs from costing and cost accountancy, and what are its main objectives and functions. Find out the evolution, nature, importance, requisites, advantages and disadvantages of cost accounting.